Mk 4010- Review Problems for Quiz 2

# Mk 4010- Review Problems for Quiz 2 - Sample Review...

This preview shows pages 1–2. Sign up to view the full content.

Sample Review Problems for Quiz 2 This set of problems is not an exhaustive coverage of the content on Quiz 2.) 1. Markup Percent (a) Selling Price (SP) = \$400. Markup on Cost = 25%. Find the Cost for this Item. (b) Cost = \$250. Selling Price = \$325. Find the Markup on Cost in dollars and as a percent of cost. 2. Breakeven Fixed Costs = \$10,000. SP = \$200. Variable Cost (VC) = \$140. (a) Find the breakeven volume in units. (b) Suppose the company has a 20% Return on Sales target. Find the breakeven volume in units that meets this 20% ROS target. (c) Prove that your answer in part (b) actually achieves the 20% ROS objective. 3. With a linear demand function, your demand equation is Q = 3,000 – 50*P. (a) Find Maximum Willingness to Buy (MWB) and Maximum Reservation Price (MRP). (b) Your current price is \$30. You are considering a 10% increase in Price. Find the elasticity of this demand function at the point where P = \$30. How much will Q decline if you increase P by 10%, given that elasticity? (c) VC = \$20. Find optimal price.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern